HUD Issues Guidance on NSP Operating Deficit Reserves, Overhead Expenses, and Combined Loan to Value Ratios
July 30, 2012 Print ShareThis
HUD has issued guidance on the following topics:
- Using NSP funds to establish reserves for operating deficits for rental housing developments by requesting an Exception from the HUD Field Office;
- Allowing subrecipients, consortium members and public non-profits to charge a “reasonable fee” of 3% to cover overhead expenses; and
- Permitting Combined Loan to Value (CLTV) ratios over 100% in combination with a conventional first mortgage.
View the guidance here.